Tax increment financing is a public financing method that provides communities with a means to fund redevelopment and infrastructure improvements. A community is allowed to borrow money against the future growth in property tax revenue within a designated TIF district that is made possible by the improvements.

Last year, then-Auditor Tom Salmon issued a report saying that some cities and towns had not handled their TIF districts properly and therefore owed money to the state education fund — a finding disputed by the municipalities.

Hoffer said the bill passed by lawmakers should clear up ambiguities in the law that likely contributed to the problems.